IRS gets involved in Crossings

The latest twist in the lingering soap opera that is the development of Naperville Crossings on the city's southwest side involves the Internal Revenue Service.

In-fighting between the two developers in charge of the project at Route 59 and 95th Street has plagued construction from the outset.

In June, it looked like a truce had been called, but city staffers now are asking the city council to intercede after the verbal agreement between both sides fell apart and the IRS got involved.

At stake is more than $450,000 of developer Stephen Subach's cash deposit with the city that was used to ensure infrastructure work was completed in a timely fashion.

Most of the work was done, but not by Subach. The city's staff wants the council to approve a plan that would use some of the money to pay a company to spread a large dirt mound that was created by the initial infrastructure improvements. They anticipate that project to cost about $300,000.

They also are asking for permission to use some of the remaining deposit to pay the IRS for an $88,000 tax levy recently placed against Subach, according to city documents.

Subach could not be reached for comment.

"I'm not willing to sit back and let this go any further," Councilman James Boyajian said. "It's time the city takes action."

Subach's section of the project has been essentially void of any development of what initially was going to be senior housing and a medical complex. The other developer, MIDCO, has rapidly developed a retail and entertainment complex at the site.

The addition of the IRS into the fray has spooked some councilmen.

"I don't think I want to get the city involved in that," Councilman Doug Krause said. "It's gotten more complex now and I don't know that moving a dirt pile is worth the risk."

The city council meets at 7 p.m. today at city hall, 400 S. Eagle St., and will discuss whether to step in.